Strong growth forecast for construction output says CPA

The latest forecast from the Construction Products Association is predicting that construction output is forecast to increase 13.2% by 2017 and private house building is expected to be a key driver of this growth. 

However, a sharp fall in public housing is expected to hinder short-term growth whilst significant investment in building a skilled workforce will be needed to support construction in the medium-term - this has long been a problem and there does not seem to be a solution in place in the short-term.

Key highlights from the forecasts include:

• Total construction output is forecast to rise 4.9% in 2015, 4.2% in 2016 and 3.5% in 2017
• Private house building is anticipated to rise 9.0% in 2015, 5.5% in 2016 and 3.5% in 2017
• Public house building is forecast to fall 10.0% in 2015, 5.0% in 2016 and remain flat in 2017
• Infrastructure output is forecast to rise 10.3% in 2015, 10.8% in 2016 and 10.4% in 2017

Dr Noble Francis, Economics Director, commented:  “Prospects for the construction industry are very bright.  Construction output is forecast to increase 4.9% in 2015 – almost double the rate of growth for the UK economy as a whole – and 21.7% overall by 2019.  This growth will mainly be driven by an increase in work across the private housing and infrastructure sectors.

“Private house building is forecast to rise 9.0% in 2015 and 5.5% in 2016 as it benefits from a strong property market supported by rising real wages, increased mortgage availability and government policies such as Help to Buy.  However, public house building activity is expected to fall sharply – 10% in 2015 and 5.0% in 2016 – due to the negative impact of cuts to social rents and the extension of Right to Buy on housing association funding.

Dr Francis continued:  “Infrastructure is also forecast to be one of the key drivers of construction growth over the next five years.  The government has a National Infrastructure Plan in place with a pipeline of projects across the UK worth £411 billion.  As a consequence, we forecast that infrastructure output will experience double-digit growth each year to the end of our forecast horizon in 2019.  It’s not all good news, however, as yet again we expect delays until 2018 for the main works on the nuclear power station Hinkley Point C.  In addition, due to concerns regarding planning and financing, we do not anticipate main works starting on HS2 before 2020.

“Our forecast growth of 21.7% by 2019 for construction has raised a key risk regarding the lack of skilled labour.  Employment in the UK construction industry is now 390,000 lower than at its 2008 peak.  So far, the lack of skilled labour has primarily affected the house building sector.  As the wider industry activity picks up, however, this issue is likely to spread across the industry.  In the short-term, it is already putting upward pressure on costs.  In the medium-term, the forecast growth will not be possible without significant investment in skills.”

Take a look at the latest construction industry sales jobs.

Image: FreeDigitalPhotos.net

BMF promotes merchant employment opportunities for youngsters

Further to our recent post indicating that graduates are starting to look at the building and construction sector for their career development route, we were encouraged to hear that The Builders Merchants Federation (BMF) has launched a new careers website to promote the wide range of employment opportunities offered by merchants and building materials suppliers. 

It is vital for the future of our industry that organisations such as the BMF promotes employment opportunities for youngsters and encourage them to join the industry. At Pinnacle Consulting many of our clients offer some superb trainee or graduate level positions and it is something we actively support. 

Looking to develop or start a career in sales or marketing in the builders merchants industry, find out more here on our opportunities>>>

Timed to following the release of A-Level and GCSE results, the new Builders Merchants Careers website -www.merchant-recruitment.co.uk - is aimed at school and college leavers, their parents and the school careers advisers and Job Centres who support them as they consider career options. 

The website features eight video profiles of young merchant and supplier employees from MKM Building Supplies, Keith Builders Merchants, Gibbs & Dandy, Ridgeons, LBS, Parker Building Supplies, Catnic and Buttle's. 

Their new site is designed to offer a route map to help youngsters understand how they can get into the sector. Once they have decided what suits them best. 

It is the latest BMF initiative is aimed at making young people more aware of the diversity of roles in the merchanting sector, together with the industry's formal vocational training programmes. 

Commenting on the launch, Anne Pavey, senior employer relationship manager, Department for Work and Pensions (DWP) said: "Promoting apprenticeships and encouraging young people to explore careers that they may not have thought about is really important. 

"The Builders Merchants Careers website provides a mixture of inspiring videos from young people already in the sector, guidance on what path is best for each individual." 

BMF MD, John Newcomb added: "We believe this campaign, the biggest initiative of its kind ever undertaken by the BMF, will be the driving force behind attracting more young people into the sector and helping builders merchants and suppliers to continue to invest in the next generation. 

"With opportunities across disciplines, from fork lift drivers and customer service to HR and design services, from first job roles all the way to the board room, there really are great opportunities to meet young peoples' aspirations at every level." 

Building Industry Job in Focus for August: National Commercial Manager for Insulation Products - £65k Plus

Our latest Job in Focus is a senior role with a manufacturer of insulation products. You would be responsible for generating substantial growth. It is a national role and you'd be responsible for 12 direct reports in field sales, accountant management, internal sales, and marketing.

Each month our Construction and Building Industry Job in Focus feature takes a detailed look at some of the fantastic sales and marketing construction and building materials job vacancies currently on our books. Job in Focus is also promoted on our website. www.pinnacleconsulting.co.uk 

Job Title: Commercial Manager
Job Ref: J6057
Product: Building Products (Insulation)
Location: National
Salary: £65k

EMPLOYER: Our client are a manufacturer of high performance Insulation Products, targeting ambitious growth to significantly increase market share. They offer a diverse range of cutting edge, high performance products designed for various applications within Construction 

ROLE: Commercial Manager - This is a key senior appointment inheriting responsibility for delivering an ambitious growth strategy, working closely with executive management in full management and leadership of the commercial function. With 12 Direct Reports, the successful candidate will manage, motivate and lead a commercial team including a field based sales and key account management team as well as Internal Sales and Marketing personnel. 

AREA: National - You will ideally be located centrally in the South of the UK - ie North Somerset, Wiltshire, Gloucestershire, Oxfordshire, Berkshire, Buckinghamshire, Hertfordshire, Bedfordshire, Norhamptonshire, Warwickshire, Cambridgeshire. 

PERSON: We are seeking a high calibre, proven sales management professional with a track record in delivering profitable sales growth. You will have experience in managing commercial aspects of a business such as Sales, Marketing and P&L. The successful candidate will have experience in managing a field sales team. In terms of background, it would be hugely beneficial if you have experience working with a technical product offering within the Construction or Building Product Sector. 

BENEFITS: £65,000 + £15,000 Basic Salary + Excellent Senior Management Package. 

NOTES: To Apply, please contact Steve Brennan on 01480 405 225 or apply online.

Search for more building products sales jobs >>>

Featured Sales and Marketing Construction Industry Jobs for August 2015

August 2015: With the summer holiday period now in full swing, it is also a good time to sit back and reflect on your career. If you are in the mindset that it is a good time for a change and to start to look for a new building industry management, sales or marketing job, we have some superb job opportunities on our books at the moment, we feature some of them here.

If you are interested in any of these roles or are looking to develop your career, contact us or take a look at our website for more details on our construction sales jobs and recruitment services.

• Call us on 01480 405225 to discuss any of our current vacancies
• Email us on recruit@pinnacleconsulting.co.uk

Keep informed of ALL our latest jobs when they become available on our Facebook page. Remember to click LIKE! to ensure you receive the full benefits of news, jobs, entertainment, articles, events and promotions.

See below for full details of our featured jobs (click 'Read more' if required).

Incredible news for James Bond fans!

News has reached Pinnacle Consulting that the classic 1979 James Bond film ‘Moonraker’ is set to be recreated this coming Saturday. 

In a world exclusive, we are delighted to reveal that one of our top recruitment consultants, Steve Brennan, and is wife to be, Becky, are auditioning for the much rumoured remake of this classic spy blockbuster. 

They have decided to play the parts of perhaps the most memorable couple from the original film, ‘Jaws’ and ‘Dolly’. 

We think they will be perfect, as you can see from the first pre-publicity shots of their forthcoming partnership, recently leaked to the Pinnacle news desk.

On a serious note, we would like to wish Steve and Becky all the best at their wedding this Saturday (15th August). We hope the wedding photographer manages to get Steve’s head in - he is 6ft 10” after all! - perhaps ‘Q’ has issued him with a special camera.

Sales and marketing jobs in the construction and property industry are highlighted as a key growth sector for graduates

Today’s graduates have reason to feel positive about the jobs market as new figures from reed.co.uk reveal employment opportunities and starting salaries have grown significantly compared with last year. Jobs in the construction and property sectors, especially in sales and marketing are some of the largest growth areas.

The number of job vacancies in Q2 2015 is up 77 per cent compared to the same time in 2014 and 7% on Q1 2015, whilst the average annual salary stands at £26,000, two per cent above the current rate of inflation.  


Highlights for graduates

• 77 per cent more job vacancies in Q2 2015
• Graduates want to learn and earn with apprenticeships attracting 85% more applications 
• Average annual graduate salary stands at £26,179 
• Qualified accountancy graduates can expect to earn up to £39,903 
• Graduates expect to earn £25,557 per annum

Are you a graduate wanting to get into sales and marketing in the building and construction industry? >>>

According to the reed.co.uk Job Index, the industries boasting the highest annual employment growth for graduates are motoring and automotive (+112%) and construction and property (+78%). 25 of the 37 sectors analysed have experienced annual growth of 12% or more. 

The sectors advertising the most graduate opportunities are recruitment consultancy, sales, education, technology and marketing & PR.  Graduates looking to become qualified accountants or work in financial services have the highest earning power, with annual average starting salaries close to hitting £40,000. Graduate engineers (£31,344) and developers (£28,940) can also look forward to earning a higher than average salary in their first year post university.

The South East of England is the region of the UK with the highest density of graduate vacancies. Graduates working there can look forward to taking home an average salary of £26,964. The West Midlands, East Midlands and North West have shown annual jobs growth of 58%, 45% and 25% respectively.

With hefty student loans to pay, this year’s graduates expect to earn £25,557 per annum compared to £23,857 last year.  What’s more, a number of graduates are looking to continue their studies whilst earning, as the apprenticeship sector has attracted 85% more applications from graduates in June 2015 compared to the same time last year. 

Commenting on the latest figures, James Reed, Chairman of reed.co.uk:  “For the thousands of graduates entering the job market for the first time, prospects look bright this year with more job opportunities and more attractive pay packages. Surprisingly, a notable feature of the latest Reed Job Index points towards a surge in graduate applications for advertised apprenticeships, which are typically seen to be an alternative to university.

For those looking to earn and learn at the same time, apprenticeships are clearly a practical and valuable route gaining work experience and learning new skills.  For employers operating in sectors particularly affected by skills shortages, such as Engineering, Technology and Manufacturing, they are also an effective route to attracting top talent and creating a skilled, home grown workforce.”

Overall, the Reed Job Index for Q2 2015 stands at 265, up 6.5% on Q1 and 76.9% on Q2 2014. 

Photo ‘Graduate Hat' by t0zz from freedigitalphotos.net

Fastest increase since March for Commercial Construction is the highlight of the latest Markit/CIPS report

July data signalled a slight overall loss of momentum across the UK construction sector, with business activity and incoming new work both expanding at slower rates than in the previous month. However the highlight was news that commercial activity rose at its fastest pace since March. 

The pace of job creation at construction companies nonetheless remained strong in July, while ongoing skill shortages across the sector contributed to a further steep reduction in sub-contractor availability. Moreover, sub-contractor charges once again rose at one of the fastest rates since the survey began in 1997.

Check out the latest construction sales jobs >>

At 57.1 in July, the headline seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) eased slightly from June’s four-month high of 58.1. Higher levels of construction output have been recorded in each month since May 2013, but the latest reading was lower than the average seen over this period (59.4), thereby highlighting a general growth slowdown from the peaks seen in 2014. 

Residential building remained the fastest growing broad area of the construction sector, according to the latest survey data. However, residential building saw the greatest loss of momentum since June, with the latest upturn in housing activity the second-slowest since June 2013. Civil engineering activity also expanded at a slower pace in July. Meanwhile, work on commercial projects bucked the overall slowdown, with activity rising at the fastest rate since March. 

Companies that reported an increase in business activity mainly cited strong inflows of new work. Anecdotal evidence also suggested that improving domestic economic conditions had created greater opportunities to tender, especially for commercial projects, while some construction firms noted that the resumption of delayed projects had provided support to business activity levels in July. However, measured overall, new order volumes expanded at a slightly slower pace than the eight-month high recorded in June.

In line with the trend for output and new orders, July’s survey data pointed to an overall slowdown in employment growth across the construction sector. However, the rate of job creation remained much stronger than the long-run survey average and there were widespread reports of skill shortages across the sector. As a result, sub-contractor availability dropped for the twenty-fifth month running in July, which is the longest continuous period recorded by the survey for over a decade. The latest rise in sub-contractor charges was only fractionally slower than the survey-record high seen in April.

Meanwhile, there were signs that some supply chain pressures have started to subside, as construction companies were the least downbeat about vendor performance since May 2012. Nonetheless, strong underlying demand for construction materials and low stocks at suppliers continued to drive up input prices in July, with the overall rate of cost inflation reaching its highest level since March.
Looking ahead, UK construction companies are highly upbeat about their growth prospects over the next 12 months, with more than half (55%) expecting an increase in business activity and only 4% forecasting a reduction. However, the resulting Future Business Activity Index was down from June’s 11-year high and the lowest since April. 

Commenting on the report, David Noble, Group Chief Executive Officer at the Chartered Institute of Procurement & Supply, said: 

“The sector almost held steady last month, though there will be some uneasiness over the housing sector exhibiting its second slowest activity growth in the last two years. Budget cutbacks and delayed decision-making will have had some impact on civil engineering activity and though housing is still a strong performer, commercial activity was the only area to see faster growth in July.

“New business wins were less in evidence as backlogs were tackled. Meanwhile, suppliers scrabbled to meet demand for a number of materials in short supply. The performance of suppliers continued to be muted, but the decline in performance was the least serious since May 2012. And though buying resumed at a slower pace, the response to new work and ongoing activity endured at a healthy rate.

“Overall the sector’s optimism was still strong, as staffing levels remained high in anticipation of future success, though issues around sourcing skilled individuals remained a thorn in the side of the sector.” 

Construction industry recovery is still threatened by lack of bricklayers says FMB

The Federation of Master Builders has revealed its findings from their latest poll of small and medium-sized firms indicate that it is becoming so difficult to hire bricklayers, carpenters and joiners, it has become a major threat to the continued growth and recovery of the construction industry. 

This problem doesn't appear to be getting better either as companies are reporting increased workloads into the key Autumn period and little sign of enough skilled workforce becoming available.

It also stated that construction firms saw their employment picking up for the sixth quarter running and the growth was expected to continue over next three months, with rising pay for construction workers mirroring this trend. 

However, yet again, there were continued concerns from about half of the 400 or so companies surveyed said they were struggling to recruit bricklayers. 

Where have all the bricklayers gone and can new ones be trained for the future? Although bricklayers are not the only trade which is lacking in availability as is shown by the full results detailed in the chart below.

Brian Berry, the trade association’s chief executive, said a skills shortage continued “to loom large over our industry”.

“Almost half of construction SMEs are struggling to recruit adequate numbers of bricklayers, with others finding it increasingly hard to hire carpenters and joiners, site managers and supervisors. 

“Looking ahead, our members are reporting that their workloads are likely to rise over the coming three months which means the shortage of skilled workers will only become more acute,” he said.

The FMB is asking the government to clarify its plans announced in the chancellor's July budget to introduce a levy on large employers to fund apprenticeships.

“If the levy on large employers is only used to fund apprenticeship training by large employers, how will apprenticeship training by small firms be dealt with? Given that two-thirds of all construction apprentices are trained by micro firms, it’s vital that we have a system in place that drives high levels of apprenticeship training through companies of every size,” said Berry.